New York Moves to Lure Crypto Startups as BitLicense Turns Five
Five years after erecting a wall around its market few crypto startups could scale – a wall known as the BitLicense – New York is handing down a ladder.
The regulator hopes the new three-strike rule will encourage BitLicense applicants to ensure they've taken its feedback on board.
While some exchanges left New York in the wake of its implementing the BitLicense, others say the regulatory regime have helped build market share and revenue.
NYDFS Superintendent Linda Lacewell said she decided to review the regulator's landmark virtual currency license in light of its impending 5-year anniversary.
Few states have developed their own cryptocurrency regulations – and none that did build a regulatory regime have followed the New York model.
The BitLicense was first proposed in 2013, but wasn't implemented until mid-2015. CoinDesk outlines the major events in its history.